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§ Private Profile · 1720 W. Rio Salado Parkway, Tempe, Arizona, U.S.
National used car retailer selling previously owned vehicles, trucks, and SUVs with in-house financing for subprime car buyers nationwide.
DriveTime is a national used car retailer and in-house financing provider based in Tempe, Arizona, that specializes in selling previously owned vehicles to subprime borrowers. The company operates a buy-here-pay-here business model utilizing a proprietary credit scoring system, purchasing vehicles at auction before inspecting and repairing them at dedicated inspection centers. Operating across the United States, the enterprise manages a network of over 140 dealerships and employs approximately 5,145 workers nationwide. Throughout its corporate history, the automotive retailer has spun off several notable affiliated businesses, including Carvana, GO Financial, SilverRock Group Inc., and Bridgecrest Acceptance Corporation. The organization recently received certification from Great Place to Work, with 80 percent of its workforce rating the overall corporate culture positively. The automotive business was originally founded as Ugly Duckling before being officially renamed as DriveTime in 2002.
Drivetime has raised $15.0M across 2 funding rounds.
Drivetime has raised $15.0M in total across 2 funding rounds.
Drivetime has raised $15.0M across 2 funding rounds. Most recently, it raised $11.0M Series A in September 2019.
DriveTime is a leading privately owned used car retailer and auto finance company that leverages technology to streamline vehicle purchasing, financing, and protection. Founded in 2002 and headquartered in Tempe, Arizona, with operations in Dallas, Texas, it operates 137 dealerships across 26-29 states, serves millions of active customers, manages a $20+ billion loan portfolio, and generates over $922 million in revenue.[1][2][4] The company focuses on matching customers—especially those with imperfect credit—to suitable pre-owned vehicles through proprietary tools, in-house financing, transparent pricing without haggling, and digital innovations like AI-driven lending via its GoFi platform and partnerships for automated income verification.[1][2][4]
DriveTime's growth momentum includes expansion into new territories, a $400 million funding round, and tech integrations such as Microsoft tools, Pega, Azure Monitor, and Stata for analytics and operations. It emphasizes improving lives through ownership paths, with corporate teams in IT, data science, finance, and product driving hybrid work models and customer-centric experiences.[1][3][4][5]
DriveTime was founded in 2002 by a team drawing on over two decades of auto industry experience, evolving from a traditional used car retailer into a tech-forward operation headquartered in Tempe, Arizona, and later expanding to Dallas, Texas.[1][2][4] Key early leaders include long-tenured executives like Nicholas Leuthold (joined 1998, Head of Reconditioning Centers), Allen Boyce (joined 1998, Head of Retail Sales), and others who have shaped its focus on in-house financing and customer matching.[6]
The idea emerged from redefining the often frustrating pre-owned car buying process, using proprietary technology and industry knowledge to create transparent, no-haggle experiences. Pivotal moments include scaling to 137+ dealerships, launching affiliate brands like Bridgecrest (financial servicing since 2003) and GoFi (AI-centric lending), and securing $400 million in funding to fuel national expansion and digital transformations.[2][4]
DriveTime rides the wave of digital transformation in auto retail and fintech, blending physical dealerships with AI, cloud infrastructure, and data analytics to disrupt traditional car-buying amid rising demand for seamless, inclusive financing.[1][2][4][5] Timing aligns with post-pandemic shifts to digital commerce, subprime lending growth (as economic pressures increase used car demand), and insurtech/fintech convergence, enabling it to serve underserved borrowers via automated verification and scalable platforms like GoFi.[2][4]
Market forces favoring DriveTime include a $400M funding boost for expansion, proprietary tools reducing friction in a fragmented $1T+ U.S. auto market, and ecosystem influence through affiliates like Bridgecrest (servicing third-party loans) and SilverRock (protection products). It influences the landscape by pioneering hybrid models that empower regional dealers with tech, fostering innovation in customer experience and ownership access.[1][2][4]
DriveTime is poised for accelerated growth through deeper AI integration in lending (via GoFi), nationwide expansion, and tech hires in data/infrastructure to handle its $20B+ portfolio. Trends like embedded finance, EV used-market surges, and regulatory pushes for transparent lending will shape its path, potentially evolving it into a full-stack auto ecosystem player. As it "carpools to shared destinations" with customers and teams, expect bolder digital retail disruptions that redefine accessible mobility.[1][4][5]
Drivetime has raised $15.0M in total across 2 funding rounds.
Drivetime's investors include Makers Fund, Amazon Alexa Fund, BDC Venture Capital, Energy Impact Partners, Fifth Wall, Fika Ventures, Fuel Capital, Lionheart Ventures, Long Journey Ventures, Meridian Street Capital, Mosley Ventures, Pareto Holdings.